Chip industry in turmoil

Intel in crisis: Qualcomm with takeover bid

According to a media report, the struggling US semiconductor manufacturer Intel has been targeted by its competitor Qualcomm. Qualcomm has approached Intel in recent days with a takeover bid.

This was reported by the "Wall Street Journal" (WSJ) on Friday, citing people familiar with the matter. As a result, Intel shares rose by eight percent in late US trading, while Qualcomm shares fell by four percent.

Chip giants silent
Neither Qualcomm nor Intel were initially available for comment. Intel, once the world's largest chip manufacturer, has missed out on the boom in artificial intelligence (AI). The company lacks competitive products for these computing-intensive applications. At the same time, demand for traditional processors is dwindling.

Intel is struggling with a billion-euro loss and has initiated a cost-cutting program. Group CEO Pat Gelsinger wants to turn things around by selling off parts of the business, cutting investments and cutting around 15,000 jobs. The share price has fallen in recent months.

Intel announced on Monday that it was postponing the construction of a factory in Magdeburg by two years. The company actually wanted to invest 30 billion euros there and create around 3,000 jobs. Production of state-of-the-art chips was expected to start around 2027.